Market Update...

Recently we had to postpone our tour to Antioch as the inventory is just not available. This time last year for that area there was 1200 SFH (single famiy homes) available, now it is under 300! Remember only a small portion of those fit the criteria for investors. So the big question is have we hit the bottom? Let's look at that - the foreclosure moratoriums have impacted inventory, even though it has been lifted there is a lagging effect which we are seeing now. Additionally, there are so many short sales on the market - it seems the banks are holding onto those - over the next year of two we will see those released slowly into the market increasing REO (bank owned properties) inventories, and opportunities for investors. Banks appear to be very strategic with not releasing too many REO's thereby helping prices not to tank completely. Antioch has seen great declines over the last couple of years, and it is further along in the cycle, than San Jose and the Bay area.  

If you are buying - buy based on the numbers - there is no guarantee of any appreciation for the next couple of years at a minimum - so now is a great opportunity to buy for cash-flow. We are seeing prices in some areas as low as they were in the late 1990's. Real estate is not liquid like the stock market, (and you know what can happen there), but if you buy right, you will do well over the long haul. Don't over-leverage, which is hard to do anyway right now as banks are not looking kindly on investors. We were told recently that investors could get up to ten loans, with certain conditions. However, this has not been our experience. It is a good time to buy if you can cash-flow - this is CA after-all and people want to live here and that will not change. When CA prices match prices in other states we will see an increase in migration to CA. That is another reason to buy real estate locally. Just make sure the numbers make sense...